Monday 4 March 2013

If a firm's total debt ratio is greater than .5, then: its current liabilities are quite high. it has too few total assets. its debt-equity ratio exceeds 1.0. it has more long-term debt than equity.

If a firm's total debt ratio is greater than .5, then:
 
its current liabilities are quite high.
 
it has too few total assets.
 
its debt-equity ratio exceeds 1.0.
 
it has more long-term debt than equity.
                                        


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